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Chapter 22- Skin Care Business Flashcards | StudBud
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Chapter 22- Skin Care Business
Chapter 22- Skin Care Business
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1
When should you learn as much as possible about a prospective partner's ethics and philosophies?
before discussing the possiblity if going into business together
after spending your capital on equipment and other necessities
during the first year of business, so you can see how the person works
before entering into any binding agreement
2
Whose assistance should you seek out if you do not understand your obligations as a business owner?
architect and accountant
marketing specialist and architect
attorney and accountant
marketing specialist and attorney
3
What is the term for business expenses that fluctuate?
fixed costs
utility costs
marketing costs
variable costs
4
What is revenue?
portion of income set aside for taxes
amount spent on purchasing products that will be sold to clients
total amount of all expenses for which the salon is liable
income generated from selling products and services
5
When should you confirm that you are in compliance with all local/state/federal regulations in order to avoid violation?
during your first year of business
during your first week of business
during your first month of business
before opening your salon
6
What is the term for items you might offer your eployees, such as tickets to educational conferences?
widgets
revenues
tips
incentives
7
What happens when stockholders buy additional shares of stock?
their voting power remains unchanged
they increase their ownership interest in the corporation
they increase their salaries
they diminish the overall value of the corporation
8
What is a good approach for a business owner to have regarding lapses in insurance coverage?
coverage is typically unnecessary
coverage should never lapse
occasional lapses are not a big deal
insurance should only be purchased when there is a problem
9
What is a characteristic of someone who might thrive in a partnership?
worries about the risks associated with assuming liability
prefers to do everything instead of delegating tasks
enjoys the security of working with others
wants to keep all profits instead of sharing them
10
What is the term for specific identifying description of an area or population, inculding, age, sex or ethnicity?
marketing strategies
criteria
quotas
demographics
11
What type of business is managed by a board of directors?
sole proprietorship
corporation
booth rental
partnership
12
What do you gainn through education?
inspiration you need to operate a profitbale business
compassion for dealing with employees problems
knowledege you need to operate a profitable business
patience for waiting out slow periods in business
13
Why should you require the services of a competent lawyer and tax accountant if you want to form a corporation?
in order to establish tax shelters in which you can hide income
to ensure compliance wiit complex state rules and regulations
to protect yourself since most companies get sued often
because every business needs a full-time kawyer and tax accountant
14
What is the PRIMARY purpose of creating a procedural guide?
relieving managers of responsibility
establishing disciplinary policies
standardizing operations
weeding out bad employees
15
What is a sole propritorship?
local business that is part of a larger national chain
business owned by stockholders
business owned by two or more people
business owned by one person
16
What should your dispensary feature in addition to ease of mobility?
high fashion furniture
fluorescent lighting
adequate storage space
soothing paint colors on the wall
17
when should you become familiar with the basic business principle of accounting?
before you open your business
during your first month in business
during your first week in business
during your first year in business
18
What is true of financial management?
it is your accountant's responsibility, not yours
it is the cornerstone of a successful business plan
it is the conerstone of a sucessful employee handbook
no one expects every business owner to know how to manage money
19
What is profit?
salaries minus tips
all salon income prior to expenses
total amount of expenses plus revenues
money left after expenses are subtracted from revenues
20
What is an employer's TOP financial priority?
payroll
rent or mortgage
utilities
product vendors
21
Who do employees typically regard as the leader of the team in the salon?
client
manager
most experienced esthrtician
receptionist
22
How quickly should you answer the phone in a professional setting?
during the first ring
you should send all calls to voicemail
after about one min of ringing
within three rings
23
What does a corporation accomplish by issuing stock certificates or shares?
eliminating corporate liability
adding members to the board of directors
raising capital
diversifying corporate investments
24
Whoe generally pays for the utilities an esthetician uses in a boot-rental arrangement?
clients
esthetician
financing company
stockholders
25
What is benefit of renting a booth or space within an established salon?
if you succeed in booth rental, you will succeed in anything you try
booth rental exposes you to every possible business situation
you gain experience by running a business on a small scale
booth renters usually end up buying the salon after a short period
26
What sort of person might thrive by operating a sole preprietorship?
independent, self-motivated individual who likes to be in charge
quiet person who feels uncomfortable giving orders
collaborative person who enjoys bouncing ideas off others
risk- averse person who does not mind sharing profits
27
What key information is supplied by accurate daily reports?
future marketing opportunites
gross income and cost of opporations
client statisfaction rates
product efficacy fluctuation
28
What do you communicate to your employees by setting clear goals and objectives and by acting consistently?
that you will be quick to punish
that you are boring and predictable
that you are a person of your word
that you dont want their input
29
What should you do 24 to 48 hours before an appointment with a client?
wash your hands to ensure cleanliness during the treatment
turn on the towel warmer and insert fresh linens
confirm the appointment with the client by phone
prepare your work station by laying out needed products and supplies
30
What is the right approach for conflicts involving employees?
responding quickly and diplomatically
immediately firing any employee involved in a conflict
immediately sending the employee home to "cool off"
letting employees work out their own problems
31
What are two of the MOST important factors when choosing the location of your salon?
distance from the bank and age of the building
product pricing and quality of service
visibility and accessibility
size of the building and quality of its fixture
32
What is the MAIN goal of public relations?
distracting the public from crimes
gaining more personal friends
achieving a certian desired behavior
attracting potential new employees
33
What is the protocol for missed calls in a professional setting?
returning these calls is unnecessary because the person will call back
every call to a business must be answered immediately
check messages often and respond as quickly as possible
returning calls within a week is sufficiently professional
34
What procedures should be spelled out in security checklists?
facial and waxing procedure
client-consultation procedure
opening and closing procedures
greeting and welcoming procedure
35
What is the correct term for the money needed to invest in a business?
lucre
capital
down payment
collateral
36
What term refers to the employees that work for you?
vendors
personnel
clients
constituents
37
What is NOT characteristic of a corporation?
involvement of stockholders
shared ownership
status as an independent legal entity
ownership limited to one individual
38
What is an employee manual?
handbook or guide containing data about the salon operations
brochure listing businesses with which the salon has professional relations
handout with names and contact information of all employees
list of paid holidays and days the salon will close early
39
What is one of the effects of incorporating?
requires all investors to be actively invovled in managing the company
eliminates the need to obtain government recognition of the business
helps to protect personal assets
eliminates the need to pay any type of taxes
40
What costs should you cover for empolyees to best of your financial ability?
benefits
leisure activities
meals
transportation
41
What are retail supplies?
items available for the sale to clients
supplies used in the reception area
supplies used to conduct daily business
supplies used to build the physical plant of a salon, like lumber
42
What business type requires the proprietor to bear losses alone?
sole proprietorship
limited liability corporation
partnership
corporation
43
What should you REFRAIN from doing when using the phone?
actively listening to the caller
projecting a positive attitude
being fully attentive to the caller
chewing gum
44
What is a function of the federal agency called the Small Business Administration (SBA)?
helping small businesses succeed
performing workplace inspections
ensuring compliance with employment laws
ensuring workplace saftey
45
What is the term for locating a business close to other businesses that offer different products and/or services?
one stop shopping
cluster retailing
group marketing
demographic geography
46
What is true of the front desk in a salon or spa?
few customers will have direct interaction with the front desk
it is the center of business operations in the salon
only the manager needs to know how the front desk operates
every estheticians takes a turn working at the front desk
47
What is an example of a fixed cost?
rent
advertising budget
plumbing repair cost
air-conditioning repair cost
48
What are consumption supplies?
supplies used to build the physical plant of a salon, like lumber
items available for sale to clients
supplies used to conduct daily business operations
supplies used in the lunchroom
49
What aspect of employee relations inculdes active listening?
positive communication
negative surveillance
negative communication
positive surveillance
50
What is the purpose of noncompete clause within an agreement to buy an established salon?
to ensure the salon has no existing competitors
to ensure the buyer will not terminate any current employees
to ensure the seller does not offer similar services to the same market
to void the deal if anyone opens a competing salon within a year
51
Why is parking a critical element in attracting business?
only people whodrive are likely to seek out salon services
because employee convenience is always your first priority
safety and convenience are importat marketing features
you wont enjoy work if you have to park a long distance away
52
What should you do when leaving phone messages?
leave a thorough description of services you expect to perfrom
address the client by name
pretend to be the salon manager
remind the client to bring enough money to pay for services
53
When answering the phone, how can you let clients know you are eager to serve them?
by telling them questions can only be answered via in-person service
by offering to send an esthetician to their home for their first service
by answering in a sincere, welcoming tone of voice
by rushing them off the phone as fast as possible, because time is money
54
What evokes a professional ambience in the salon?
neighborhood in which the salon operates
style of the salon
clientele of the salon
popularity of the salon
55
Why should you contact local authorities after confirming your ability to own and operate a salon?
to request favorable write-ups in local tourism guides
to win favor by offering free services to local authorities
to request public financial support
to investigate necessary business licenses and regulations
56
What BEST describes a partnership?
one person owning a business and another person serving as manager
one person starting a business and then selling it to another person
multiple people sharing ownership of a business
multiple stockholders sharing ownership of a business
57
What is a business plan?
checklist explaning how procedures are followed
handout given to employees explaining company policies
document outlining a company's beliefs and goals
strategy for understanding key elements in developing business
58
What helps you learn how to forecast (make predictions) about your business?
achieving five or more years of consistent profitability
becoming familiar with the financial affaris of your competitors
maintaining a staff of five or more for atleast a year
becoming familiar with specific costs related to running the business
59
What should you do after asking a caller for permission to put the caller on hold?
warn the caller that he or she might be on hold for a long time
allow enough time for a responce
shout to the person in the salon with whom the caller needs to speak
immediately put the caller on hold
60
What does OSHA oversee?
efficacy of skin care products
compliance with tax regulations
product advertising
workplace saftey
